DEUTSCHE POST PROFIT RISES 70 PERCENT

DEUTSCHE POST PROFIT RISES 70 PERCENT

   Deutsche Post said its profit jumped 70 percent to 1.3 billion marks
($709 million) in 1998, primarily due to an acquisition spree that included
the purchase of 25 percent of DHL International and nearly 100 percent of
Swiss forwarding giant Danzas.
   Turnover at Europe’s largest postal and logistics company grew 4 percent
to DM 28.7 billion.
   Deutsche Post CEO Klaus Zumwinkel said the increase in earnings was due to
improvements in customer service and cost-cutting, including elimination of 10,000 jobs
last year.
   Zumwinkel said he expects Deutsche Post to generate DM 50 billion in
revenue next year with further acquisitions at home and abroad, and by
integrating and growing the financial services business of Deutsche
Postbank. Deutsche Post purchased 100 percent control of Germany’s Postbank in January.
   Deutsche Post plans an initial public stock offering in 2000.